Thanks for your replies!
That is just what I needed as I had thought both viewpoints...just needed the positive to tip over more. My priest had already said that music does need to be religious so I emailed him my special request giving my interpretation of how it would fit and YouTube link to the Webb sisters singing it (as I will have female vocalist).
He replied to say he knows the song well as he has been to see Leonard Cohen a few times! He said I'm sure we can fit it in! I'm thrilled he's a LC fan...nearly makes it all the better
Also I understand it could be used as funeral song, and maybe I'll make sure it's played at mine, but lots of music can be suitable for both. I'll probably have amazing grace and that can go for both too.
Thanks again for your feedback.